The definition of stable economic growth is a little bit complicated and hard to explain in simple words. Stable means not changing, and the word “economy” can be defined as a systematic process or condition. It can also mean that prices are consistent with the overall state of the economy. The indicators of this kind of stability are usually recorded in indicators such as gross domestic product (GDP), inflation, interest rates, unemployment rate, balance of payments, international trade balance and foreign exchange rate.
Many businesses have different definitions of what stable means for them. A business can experience rapid growth or it can experience a steady growth. This is called “level of activity” or “safe and steady” growth. For business, this is a long-term goal that they aim for. They define this growth in terms of profit and loss. If a company has a lot of profit, it will be considered as “healthy” and it can be considered as “growing.”
Growth can also be considered as “stability” for business. In the economic crisis that the whole world is undergoing at the moment, business is suffering a great economical setback. It is normal for businesses to have “static” conditions during their growth. Their profit will not increase because of inflation, but it will remain level. They will not experience any decline in the number of their customers, nor will there be any change in their investment, inventory or structure. In short, they will be able to continue with their present status until something changes.
Some economists think that “stable” is different from “risky.” According to them, stability is a good thing to have in any economic growth. The key here is to minimize the fluctuations and to maintain the status quo. This way, the business can plan for changes in the market and adapt to the situation. When there is a change, it will be gradual and this will not affect the business.
A good definition may therefore be “a state of the business where the fluctuations do not affect the business.” Stable means that the business will not experience changes. It does not necessarily mean that the business won't experience change, but it does mean that the changes are within acceptable levels. Of course, you should consider that even if the definition of stable is very long, it may still not be true because the definition may be relative.
For example, suppose a new business has just been founded. The government may wish to invest in this business because it will bring in a lot of tax revenue. A businessman who earns 30% profits may . . . . . . view this as risky investment. On the other hand, the businessman who earns 100% profit may consider this to be a very stable company.